The Reliance Power’s Executive Director and Chief Financial Officer, Ashok Kumar Pal, was arrested by the Enforcement Directorate late on October 10. The arrest was made under the Prevention of Money Laundering Act (PMLA) and Pal was produced before a court on Saturday morning. The court later granted ED Pal’s custody for two days.
Following the arrest, the company said in an exchange filing that Pal has stepped down from his position as Executive Director and CFO with immediate effect. A formal letter will follow and the requisite disclosure will be made, RPower further said.
According to reports, the case involves the issuance of a Rs 68.2 crore bank guarantee allegedly submitted to the Solar Energy Corporation of India (SECI) on behalf of Reliance NU BESS, a subsidiary of Reliance Power. However, the guarantee was found to be “fake”.
‘Anil Ambani not connected to the matter’
Reliance Power, formerly known as Maharashtra Energy Generation, said in the exchange filing that it would take all appropriate steps as advised legally. The company clarified that Anil Ambani is not connected to the matter in any way. “We also wish to clarify on the media reports that Anil D. Ambani is not on the Board of Reliance Power Limited for more than 3.5 years and is not concerned with this matter in any manner,” the exchange filing read.
The accused company, which allegedly operated a racket for providing “fake” bank guarantees for business groups, was identified by the ED as Odisha-based Biswal Tradelink.